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Conventional Fabrics Often Stock More Than 100 Days, But Some Enterprises Are Flocking To It

2020/9/9 13:50:00 0

Regular Fabric

We all know that this year is the off-season in the textile industry for many years. All production links and various fabric products have encountered the situation of sales decline and profit shrinkage. But among all fabrics, the most difficult and the most confused in the future may be the common conventional fabrics in the market. Although the market is not good, but there are still many hot-selling products in the past six months, but these products have nothing to do with conventional fabrics. Even if you build a little edge, the situation of "chicken feather in one place" is even worse!

Inventory more than 100 days, profit almost zero

The most obvious manifestation of the bad situation of conventional fabrics is that the inventory in the warehouse is like a runaway wild horse. According to a manufacturer of polyester taff and Chunya textile, there are only 200 machines in their factory, but the inventory in their warehouse has exceeded 4 million meters, which is basically equivalent to their output of 100 days. This is also because they stopped production for several holidays in July and August, slowing down the growth rate, otherwise the inventory would be larger.

In April and may, their inventory was about 2 million meters, which almost doubled in a few months. It can be seen that over the past few months, orders have basically not improved, and production and sales have been unbalanced. Of course, the imbalance is not only production and marketing, but also profits that have fallen.

According to the person in charge of another ditaf production enterprise, their orders have dropped by about 70% so far, and they will certainly lose money in the whole year. A large number of raw materials were prepared before the year, but they suffered a great loss after the year. And the price of raw materials has continued to fall, their gray cloth can only follow the depreciation, the key is no one to cheap. Every meter cloth profit can have a few cents are good, the vast majority are sold at a loss.

Even if you lose money, it's hard to get money. In order to be able to accept orders, it is normal for the market to allow arrears, but risks also exist. Some new customers may borrow quality problems and find reasons to deduct payment. For this reason, many grey cloth merchants have raised the threshold of cooperation with new customers, and even some enterprises only cooperate with old customers in the current market. Although the speed of payment for old customers is also slow, but generally will not be deducted for no reason.
Textile people can more or less see the sad situation of conventional fabrics, but even so, there are still many enterprises trying to enter the conventional fabric weaving industry.

The future of conventional fabrics is confused, but some enterprises are flocking to it

"If you fall in the water, you will not drown. If you stay in the water, you will drown." we all know that, as well as conventional fabric manufacturers in deep trouble. Does that mean that these manufacturers need to actively transform and change their products to find a way out?

"I'd rather change my career than change my fabric" is probably the most common attitude of these conventional fabric manufacturers. According to the person in charge of a simulation silk weaving factory, they had the idea of updating equipment and changing production products a year ago, but after the new machines were loaded, they still stopped them. Now the market, to make a change means a lot of investment in the early stage, at the same time, it needs to redevelop relevant customers. These costs and risks are unbearable for them at present, or are they more stable in making old products.

However, he has not been idle. He has been investigating the logistics and fitness equipment industry. These industries have performed very well this year, and he has the idea of turning to this field. After years of working on conventional fabrics, they may have seen through the prospect of this kind of fabrics. Some textile workers who were not willing to make some changes were more determined by this year's epidemic situation.

Do not want to develop in conventional fabrics, and even try to escape is the idea of many textile people. But there are still some enterprises trying to enter the conventional fabric production industry.

According to a textile man, his company is a raw material factory, which mainly produces such coarse raw materials as Oxford cloth. But this year's market is not good, their stock of raw materials is very serious, now the high-level of the factory has their own ideas of weaving and consuming their own raw materials. Therefore, we have been doing market research recently. It seems that it is a high probability event that raw material production enters into fabric weaving in the later stage.

The plight of conventional fabrics, all textile people have heard and witnessed, a variety of overstocked inventory, profit shrinkage can be said to have been at the peak of history. However, there are few ways to adjust the production strategy and change the production varieties in the market. The vast majority of textile workers are not willing to make a breakthrough in conventional fabrics. However, the dilemma of conventional fabrics has not stopped some outsiders from yearning for it. There are many ideas to enter the conventional fabric weaving industry in the market, and even some enterprises have begun to implement it.

On the one hand, the existing conventional fabric manufacturers are "self-contained" in production inventory, on the other hand, some emerging production capacity is about to break out in the conventional fabric market. The challenge of conventional fabrics has just begun, and the next inventory and profit will refresh the existing cognition of textile people again and again.

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